Bitcoin Faces Critical Test as $81,000 Level Becomes Crucial Support
By John Nada·Jan 31, 2026·2 min read
Bitcoin is nearing its fourth straight monthly decline, with the $81,000 support level holding critical significance as the market faces heightened volatility.
Bitcoin is on the brink of recording its fourth consecutive monthly decline, struggling under a fundamental shift in market momentum. According to CryptoSlate, the cryptocurrency dropped nearly 7% in just 24 hours, now priced at $82,513. CoinGlass data revealed that long traders faced liquidations exceeding $750 million during this rapid price collapse, marking the worst losses for this group since November.
The report noted that Bitcoin has shed over 5% of its value this January alone, following losses of 3.99% in December and 17% in November. Analysts like Joe Consorti pointed out that Bitcoin has fallen below its 2-year moving average for the first time since 2022, raising concerns about a potential capitulation cycle.
Recent market dynamics reflect a broader trend, as U.S. spot Bitcoin ETFs have returned to equilibrium after a period of outflows, indicating a slowdown in demand. Glassnode highlighted that the short-term holder cost basis is around $96,500, which has capped recovery attempts. More alarmingly, Alphractal CEO Joao Wedson warned that Bitcoin must not lose the $81,000 level, as any breach could trigger a capitulation akin to 2022.
As traditional markets rally, Bitcoin's struggle underscores a pivotal moment. If it fails to hold the $81,000 floor, the next significant support could be as low as $65,500. Investors should brace for potential volatility as the market navigates these critical thresholds.